GST 2.0 and further reforms: The path to stronger state finances runs through a wider tax base
The more telling story lies beneath the national totals. State GST collections have two parts: state GST (SGST), retained by the state where a transaction takes place, and integrated GST (IGST), levied on inter-state sales and collected by the Centre, which then passes on the destination state’s share. If a Maharashtra manufacturer sells furniture to a Karnataka retailer, it charges IGST, and Karnataka receives its share because that is where the furniture is retailed for consumer use.
